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Nikkei is Climbing Despite the Sharp Decline in the Economy

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The stock market in Japan ended with a small profit on Tuesday. Investors took in a stronger-than-expected contraction in the Japanese economy in the second quarter.

 

They were particularly looking forward to the opening of Wall Street after the long weekend in the United States. The other major stock market indicators in the Asian region also improved slightly.

The main index in Tokyo, the Nikkei 225, finally closed 0.8 percent in the plus at 23,274.13 points. The Japanese economy shrank by 28.1 percent in the past quarter.

Previously, a decline of 27.8 percent was reported. The blow from the corona crisis shows that the new Japanese prime minister, who will be elected by the ruling party LDP on September 14, faces a significant challenge to avoid a deeper recession.

At the companies, SoftBank continued the decline with a minus of 0.6 percent. The day before, the Japanese tech investor fell more than 7 percent due to concerns about the large position of call options on American technology companies that SoftBank took last month.

The stock exchange in Shanghai was 0.8 percent higher in the meantime, and the Hang Seng index in Hong Kong gained 0.3 percent. Tensions between China and the US increased further after US President Donald Trump hinted at decoupling the US economy from China’s.

Trump has made a hardline against China one of his hobby horses in the election campaign. The Kospi in Seoul climbed 0.7 percent, and the Australian All Ordinaries in Sydney rose 0.6 percent.

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